Jim Hickey’s American Politics

Let's Get Real.

Equities First Holdings: A Growing Trend in Stock-based Loan Borrowers

Since 2002, Equities First Holdings has been providing alternative financing solutions to businesses and individual investors. The company’s headquarter is in Indianapolis, Indiana but it has offices in nine countries which include Australia, Singapore, London, Hong Kong among others. EFH offers capital against the shares traded on public exchanges across the world. To-date, the company has so far completed over 650 transactions worth over $1.4 billion, providing customers with high loans to value at reduced fixed interest rates.

Equities First Holdings provides loans based on its analysis of risks and future performance related to bonds, Treasuries, and stocks.

A growing trend of borrowers who utilize stock as loan collateral

As financial institutions and banks tighten their lending criteria, investors are turning to Stock-Based Loans as a perfect alternative to raising capital quickly. This lending criterion is also attracting borrowers whose qualifications cannot get them more conventional credit-based loans.

As a leader and global lender of alternative shareholder financing solutions, Equities First Holdings is witnessing more traction in stock-based and margin loans in an economic atmosphere where banks and other financial institutions have heightened their lending criteria. As such, Equities lending is becoming an attractive alternative.

Ideally, stock-based loans have an increased loan-to-value ratio compared to margin loans and provide a fixed interest rate. This way, the lender will have conviction throughout the life of his/her transaction.

As Al Christy, Jr, President and founder of EFH notes, the market fluctuation is unavoidable during an average three-year loan term. However, stock-based loans offer a shield since the borrower will be lowering his/ her risk of investment in a downside market. Also, these loans have no restrictions so you can utilize the money for whatever purpose. Most of them are non-recourse, so the borrower can easily walk away with no obligation, even if the collateral stock has decreased in value.

Equities Holdings has been established on a code of transparency and integrity. They heavily rely on leading regulatory, legal as well as trading institutions for counsel. Their mission is to provide maximum benefit at minimum risk so that their clients can meet both their personal as well as professional financial goals.

For more information please visit https://www.easyequities.co.za/

Comments are closed.